It is a nightmare scenario: You go to an ATM to withdraw cash. It declines to provide you money. The computer displays your balance is zero. You freak out. You immediately run to the bank branch. Your bank shows a duplicate of the levy notice from the IRS. You feel like your world has just collapsed.
Do not think that you can't come out of this levy. From my years of experience as a tax lawyer, I found that for every tax problem, there exists a solution. In- fact, there's no such thing of hopeless tax case. The points that are outlined in the next few paragraphs will help you to get the IRS release.
1. The cash in your bank account will never go immediately to the federal government. Your bank will freeze your account for a three week period from the date of garnishment and after that only the funds will be transferred to the IRS. This is the time you've got in taking all of the actions and doing the negotiations with the IRS so that you can request the money be returned into your bank account. This is called as bank levy release.
2. The IRS may possibly ask that you are in compliance with estimated taxes and withholdings and all of your old tax assessments. There are certain exceptions to the normal practices, so the IRS employee is not the last word.
3. You must fill a form which the IRS uses to find out your current financial situation. Called as collection information statement, this form asks about your income details, bank account information and also about your retirement plan. Utmost care has to be taken with the details you furnish to the IRS because from this form only they will figure out what you can actually pay back.
4. Sometimes, the Internal Revenue Service might deny your application. However, you have got the right to appeal against their enforcement actions. There are two major appeal provisions - Collection Appeals Program or CAP and Collection Due Process. When compared to Collection Due Process (CDP) or other appeals like OIC and Audit Appeals, Collection Appeals Program (CAP) provides a higher success rate and this is where a tax attorney can help you to use it in an optimal way. You know what, IRS publishes a rule book called Internal Revenue Manual (IRM) to guide their agents and it gets regularly updated by the federal government. Since the IRM guidelines are vast and complicated, many IRS employees don't follow the rules most of the time. Here the tax attorney will use this effectively to win the CAP appeal by pinpointing the mistakes and the rules that was not followed by the IRS to the Appeals Officer. Once the established facts are demonstrated in the case, the appeal officer will reverse collection department decision and order for immediate release of your bank levy.
5. You got a garnishment relief but it doesn't mean you can relax yourself forever. This levy relief, if granted, is only temporary. Failure to find a long- term solution or continued non- payment will result in many more garnishments. Every cloud has a silver lining so it's best to study the options available. There are seven crucial steps you must carry out to ensure the best deal with the IRS. Just click here to download your copy of this guide and educate yourself on the top methods for getting a permanent solution for any tax related concerns.